There are several types of loans available for various purposes with different sets of conditions. But a personal loan is considered the most convenient option to choose. Many institutes are good at personal loan in Tanjong Pagar. Wonder why, read it here!
What Is a Personal loan?
In recent times, the preference for personal loans has grown significantly. A personal loan has some of its assorted features that favour people, such as:
Invest it Wherever you want.
A personal loan gives you the freedom to use the money anywhere, from vacations to investing in washing machines or any other home appliances, etc. Also, these loans are quite easy to get approved. The documentation required for approval and verification are hassle-free as compared to other loan types. The documents include:
- Residence proof- For residence proof, you can submit your electricity bill, gas bill, etc.
- Id proof- For Id proof, you can attach your Aadhar card, voter Id, etc.
- Money in-flow proof- For money in-flow proof, you can use your tax payment slip, salary slips, etc.
No security required
One major reason for the growing popularity of personal loan is that it is an unsecured type of loan. In other words, there is no collateral required to pay back the loan. It is a credit-based system. You have to repay the amount in instalments with a fixed interest rate every month. These are known as EMIs.
Faster to get approved.
Before approving a loan amount, the lender examines your application, and your profile, and then verifies your details. However, in personal loans, there are fewer documents and the verification gets faster.
Choose your Tenure
Unlike other loans where you have to repay the loan on the condition set by the lender, a personal loan allows you to choose the repayment tenure from 6 months to 3 years as per your capacity.
Conclusion
A personal loan comes with many more rescuing points which make it easier and suitable for everyone and differentiate it from other types of loans, such as, the maximum amount you can lend from the bank or any other institution is decided based on your income, and the lender’s assessment of your application.
Personal loans are best in times of emergencies or funding your dream vacation, car, marriage, etc. and you can always opt for a personal loan and get it quicker with a good credit score and history. The instalment amount is always kept below 50% of your income. To get a good offer, ensure that your previous loan is cleared and have a good credit score and history.